100 Free Real Estate Exam Questions and Answers

Updated on: October 27, 2026

This free real estate practice exam has 100 questions and answers covering the topics on most real estate licensing exams: property ownership, agency, contracts, finance, fair housing, valuation, math, closing, leases and licensing law.

Each question has four choices, the correct answer and a short explanation, so you learn why an answer is right and not only which letter to pick.

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Important: these are original practice questions written to help you study. They are not real exam questions. Real estate licensing is regulated by each state, so laws, terms and exam content differ.

Always check your state real estate commission’s candidate handbook for the exact rules that apply to you.

Take the Practice Test

Select an answer to see instant feedback and an explanation. Your score updates as you go. Exam tips and study advice are below the quiz.

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Property Ownership and Land Use

1. Which estate is the highest and most complete form of ownership?

Answer: D. Fee simple absolute gives the owner the most rights, including the right to use, sell, lease, will and encumber the property.
2. The person who receives property after a life estate ends is called the:

Answer: C. A life estate ends when the life tenant dies. The property then passes to a remainderman, or returns to the grantor if there is a reversion.
3. Which form of co-ownership includes the right of survivorship?

Answer: B. When a joint tenant dies, the surviving joint tenants take the share automatically. Tenants in common can leave their share to heirs.
4. Which of these is one of the four unities required to create a joint tenancy?

Answer: B. The four unities are time, title, interest and possession. Co-owners must acquire their interests at the same time.
5. An easement that benefits a neighboring parcel and passes with the land when it is sold is called an:

Answer: A. An appurtenant easement has a dominant parcel that benefits and a servient parcel that is burdened. It runs with the land.
6. The government’s power to enact zoning, building codes and other laws to protect public health and safety is called:

Answer: D. Police power allows reasonable regulation of land use without compensating owners.
7. What is the government’s right to take private property for public use with just compensation?

Answer: C. Condemnation is the legal process of using eminent domain. The owner must be paid just compensation.
8. When a property owner dies without a will or heirs, the property typically goes to the state through:

Answer: C. Escheat returns property to the state when no legal owner can be found.
9. Which of these is generally required to acquire title by adverse possession?

Answer: B. Possession must be open, notorious, continuous, exclusive and hostile for the statutory period. States set the period and extra requirements.
10. A personal property item that is permanently attached to real estate usually becomes a:

Answer: A. Courts look at how the item is attached, how it is adapted to the property, the intent of the parties and any agreement. Chattels are movable personal property.

Agency and Brokerage Relationships

11. Which fiduciary duty requires an agent to put the client’s interests ahead of their own?

Answer: D. Loyalty means no secret profits, no self-dealing and no putting other interests first. Fiduciary duties also include obedience, disclosure, confidentiality, accounting and reasonable care.
12. An agency relationship between a seller and a broker is usually created by:

Answer: D. A listing agreement is an express contract that creates an agency with the broker.
13. When one broker represents both the buyer and the seller in the same transaction, it is called:

Answer: C. Dual agency usually requires informed written consent from both parties. Some states ban or restrict it.
14. A real estate agent is typically what kind of agent?

Answer: B. A special agent has limited authority to do one task, such as selling a specific property.
15. Which listing gives the broker all proceeds above a stated price?

Answer: A. Net listings are illegal or restricted in many states because they can create conflicts of interest.
16. Under which listing is the broker entitled to a commission no matter who finds the buyer during the listing term?

Answer: A. With an exclusive right to sell, even a sale by the owner earns the broker a commission.
17. Which listing allows an owner to hire several brokers at once and pay only the one who produces the buyer?

Answer: D. An open listing is nonexclusive. The first broker to procure a buyer earns the commission.
18. A licensee who knows of a material latent defect in a property generally must:

Answer: C. Agents cannot conceal known material defects. Specific duties vary by state.
19. Which of these normally ends an agency relationship by operation of law?

Answer: B. Other endings include completion of the purpose, expiration of the term, mutual agreement and bankruptcy.
20. A buyer who is not represented by the agent but is treated honestly and fairly is called a:

Answer: B. A client has a fiduciary relationship. A customer does not, but the agent still owes honesty and fair dealing.

Real Estate Contracts

21. Which of these is required for a valid contract?

Answer: A. A valid contract needs competent parties, offer and acceptance, consideration and a legal purpose.
22. Under the statute of frauds, a contract for the sale of real estate must generally be:

Answer: D. A written, signed agreement is required to enforce most real estate contracts.
23. A contract that has no legal effect from the start is:

Answer: C. A void contract is invalid. A voidable contract is valid until a party with the right to cancel does so.
24. A contract in which some obligations remain to be performed is called:

Answer: C. A purchase contract is executory until closing, when it becomes executed.
25. Which contract gives a buyer the right, but not the obligation, to purchase for a set period at a set price?

Answer: B. The buyer pays consideration for the option. The seller must sell if the option is exercised on time.
26. An earnest money deposit mainly shows the buyer’s:

Answer: A. Earnest money shows serious intent and may be forfeited or returned depending on the contract and state law.
27. After a valid purchase contract is signed but before closing, the buyer holds:

Answer: D. Equitable title is the buyer’s right to obtain legal title when the contract conditions are met.
28. Which remedy compels a party to carry out the terms of a real estate contract?

Answer: D. Courts may order specific performance because each parcel of land is considered unique.
29. A clause that makes a contract depend on an event, such as loan approval, is called a:

Answer: C. If a contingency is not met, the buyer can usually end the contract and may get the deposit back.
30. In an installment contract (contract for deed), who generally holds legal title until the buyer finishes paying?

Answer: B. The buyer gets possession and equitable title. Legal title passes when the contract is paid.

Mortgages and Real Estate Finance

31. In a mortgage, the borrower is called the:

Answer: A. The borrower (mortgagor) pledges the property. The lender is the mortgagee.
32. Which document is the borrower’s promise to repay the loan?

Answer: A. The note is the evidence of the debt. The mortgage or deed of trust secures it with the property.
33. In a deed of trust, the lender is called the:

Answer: D. The trustor is the borrower. The trustee holds title as security. The beneficiary is the lender.
34. A buyer borrows $240,000 on a home appraised at $300,000. What is the loan-to-value ratio?

Answer: C. $240,000 divided by $300,000 equals 0.80, or 80 percent.
35. Private mortgage insurance (PMI) is typically required on a conventional loan when the down payment is:

Answer: B. PMI protects the lender against default when the equity is low.
36. Who insures loans under the FHA program?

Answer: B. FHA loans are insured. VA loans are guaranteed by the Department of Veterans Affairs.
37. How much is one discount point on a $250,000 loan?

Answer: A. One point equals 1 percent of the loan amount: $250,000 times 0.01.
38. Charging interest above the legal maximum is called:

Answer: D. Usury laws set limits on interest rates. They vary by state and loan type.
39. A clause that lets the lender demand the full loan balance after default is the:

Answer: C. Acceleration makes the whole debt due immediately.
40. A clause that returns title to the borrower when the loan is paid in full is the:

Answer: C. Defeasance cancels the lender’s interest once the debt is paid.

Fair Housing and Ethics

41. Which of these is a protected class under the federal Fair Housing Act?

Answer: B. Federal protected classes are race, color, national origin, religion, sex, familial status and disability. States and cities may add more.
42. Inducing homeowners to sell quickly by claiming that people of a protected class are moving in is called:

Answer: A. Blockbusting, or panic selling, is illegal under fair housing law.
43. Directing buyers toward or away from neighborhoods because of a protected characteristic is called:

Answer: D. Agents must show properties based on the buyer’s stated needs, not on protected characteristics.
44. Refusing to lend or insure in an area because of the neighborhood’s racial or ethnic makeup is called:

Answer: D. Redlining is illegal under fair lending and fair housing laws.
45. Which situation is a federal Fair Housing Act exemption?

Answer: C. Exemptions do not allow discriminatory advertising, and they generally do not apply when a broker is used. State laws may be stricter.
46. Which advertisement phrase most clearly violates fair housing law?

Answer: B. Ads cannot show a preference or limitation based on a protected class, including familial status.
47. A housing provider’s “no pets” policy generally cannot be applied to deny a:

Answer: A. Fair housing law requires reasonable accommodations for people with disabilities, which can include assistance animals.
48. Exaggerated statements of opinion, such as “best house in town,” are called:

Answer: A. Puffing is generally legal opinion. Statements of fact must be true.
49. Intentionally misrepresenting a material fact to induce someone to act is called:

Answer: D. Fraud can lead to damages, license discipline and contract rescission.
50. Which law bans racial discrimination in all property transactions, with no exemptions?

Answer: C. The 1866 Act applies to race only but covers every sale and rental.

Valuation and Appraisal

51. Which approach to value is most reliable for single-family homes?

Answer: B. Recent sales of similar properties, adjusted for differences, give the best evidence of value for homes.
52. Which approach is most often used to value an apartment building?

Answer: B. Investors buy for income, so value is tied to net operating income and the cap rate.
53. Which formula describes the cost approach?

Answer: A. The cost approach is useful for new or unique properties.
54. The most probable price a property will bring in a competitive, open market with informed parties is its:

Answer: D. Market value assumes arm’s-length parties who are not under pressure.
55. Highest and best use must be:

Answer: C. It is the use that produces the highest value, tested in this order.
56. The principle of substitution says that a buyer will pay no more than:

Answer: C. This principle supports the sales comparison approach.
57. The principle of regression says that the value of a better property tends to be:

Answer: B. Over-improving a property for its neighborhood can mean a loss of value.
58. Which is an example of functional obsolescence?

Answer: A. Functional obsolescence comes from design flaws or outdated features. Cracks and paint are physical deterioration, and the highway is external.
59. A loss in value caused by a factor outside the property, such as a nearby landfill, is:

Answer: D. External (economic) obsolescence is generally incurable by the owner.
60. A licensee without an appraiser license may usually prepare a:

Answer: D. A CMA is an opinion of a likely listing price. It is not an appraisal. State rules apply.

Real Estate Math

61. A home sells for $350,000 and the commission is 6 percent. What is the total commission?

Answer: C. $350,000 times 0.06 equals $21,000.
62. A home sells for $280,000 with a 5 percent commission. The agent’s split is 60 percent. What does the agent receive?

Answer: B. $280,000 times 0.05 is $14,000. Sixty percent of $14,000 is $8,400.
63. How many square feet are in one acre?

Answer: A. An acre is 43,560 square feet. A square mile is 640 acres.
64. A lot is 60 feet by 120 feet. What is its area?

Answer: A. Area is length times width: 60 times 120 equals 7,200.
65. Annual property taxes are $3,600. The seller has not paid taxes for the year and closing is March 1. What is the seller’s share of the taxes (using 30-day months)?

Answer: D. The seller owes January and February: $3,600 divided by 12 is $300 a month, times 2 is $600.
66. A $200,000 loan has a 6 percent annual interest rate. How much interest is due in the first month on a simple basis?

Answer: C. $200,000 times 0.06 equals $12,000 a year, divided by 12 is $1,000.
67. A buyer makes a 20 percent down payment on a $425,000 home. How much is the down payment?

Answer: B. $425,000 times 0.20 equals $85,000.
68. A home sells for $400,000. The commission is 6 percent, the mortgage payoff is $250,000 and other seller costs are $5,000. What are the seller’s net proceeds?

Answer: B. $400,000 minus $24,000 commission, minus $250,000, minus $5,000 equals $121,000.
69. An investment property has a net operating income of $45,000 and the market cap rate is 9 percent. What is its value?

Answer: A. Value equals NOI divided by the cap rate: $45,000 divided by 0.09 equals $500,000.
70. A home sells for $240,000 and rents for $1,600 a month. What is the gross rent multiplier?

Answer: D. GRM equals price divided by monthly rent: $240,000 divided by $1,600 equals 150.

Deeds, Title and Closing

71. Which deed gives the grantee the most protection?

Answer: C. A general warranty deed has the grantor guarantee title against defects from any time.
72. Which deed conveys whatever interest the grantor has, with no warranties?

Answer: C. Quitclaim deeds are often used to clear title or transfer between family members.
73. Which is required for a valid deed?

Answer: B. A deed must also have a competent grantor, an identified grantee, a legal description and acceptance. Recording is not required for validity.
74. What is the main purpose of recording a deed?

Answer: A. Recording protects the buyer’s priority against later claims.
75. A lender’s title insurance policy protects:

Answer: D. An owner’s policy is a separate policy that protects the buyer.
76. Which federal law prohibits kickbacks and requires certain settlement disclosures?

Answer: D. The Real Estate Settlement Procedures Act protects consumers during settlement.
77. Which federal law requires disclosure of the APR and finance charges?

Answer: C. TILA is implemented by Regulation Z.
78. Lenders must deliver the Closing Disclosure at least how long before closing?

Answer: B. The Consumer Financial Protection Bureau says lenders must send it at least three business days before the loan is finalized.
79. Which cost is customarily paid by the seller?

Answer: A. Local custom and the contract decide who pays which cost.
80. An escrow agent is best described as:

Answer: A. Escrow agents follow written instructions and do not take sides.

Leases and Property Management

81. A lease with a fixed beginning and ending date creates:

Answer: D. An estate for years ends automatically on the end date, with no notice needed.
82. A lease that renews automatically for successive periods, such as month to month, is:

Answer: C. Either party can end it with proper notice.
83. A tenant who stays after the lease ends without the landlord’s consent holds:

Answer: B. This is also called a holdover tenancy.
84. In a net lease, the tenant typically pays rent plus:

Answer: B. A triple net lease passes all three costs to the tenant.
85. A retail lease where rent depends partly on the tenant’s sales is a:

Answer: A. Percentage leases usually include a base rent plus a percentage of sales.
86. Security deposit rules, such as limits and return deadlines, are mostly set by:

Answer: D. Always check the state’s landlord-tenant law.
87. When a landlord’s failure to maintain makes a rental unfit, forcing the tenant to leave, the tenant may claim:

Answer: C. Constructive eviction results from a serious breach of the landlord’s duties.
88. A property manager’s authority and duties are primarily defined by:

Answer: C. The agreement sets out duties such as collecting rent, maintaining the property and reporting to the owner.
89. When a tenant transfers all remaining lease rights to another person, it is called:

Answer: B. In a sublease, the tenant keeps some interest. The original tenant often stays liable.
90. The implied warranty of habitability generally requires a landlord to provide:

Answer: A. Most states require residential landlords to meet basic health and safety standards.

Disclosures, Environmental Issues and Licensing

91. Federal law requires lead-based paint disclosures for housing built before:

Answer: D. Sellers and landlords must give buyers or tenants a lead warning and any known information.
92. Radon is best described as:

Answer: D. Radon comes from soil and rock and can build up in homes. Testing is the only way to know.
93. Which federal law, known as Superfund, can make owners liable for cleaning up hazardous substances?

Answer: C. Owners can be liable even if they did not cause the contamination. Buyers often do environmental due diligence.
94. Mixing a client’s money with the broker’s own money is called:

Answer: B. Brokers must keep client funds in a separate trust or escrow account.
95. Using a client’s money for the broker’s own purposes is called:

Answer: A. Conversion is serious misconduct and can lead to license loss and criminal charges.
96. A salesperson may generally be paid for real estate services only by:

Answer: A. Commissions go through the broker. Rules vary by state.
97. A broker is generally responsible for the real estate activities of:

Answer: D. Supervision is a broker’s duty. Failing to supervise can lead to discipline.
98. Two competing brokers agree to charge the same commission rate. This is:

Answer: C. Price fixing violates antitrust law. Commissions are negotiable.
99. A stigmatized property is one that:

Answer: B. Whether stigmatized facts must be disclosed varies by state.
100. Which document transfers ownership of real estate?

Answer: B. A deed conveys title. A note shows debt and a title policy insures title.

Your Score

Section Score

About the Real Estate Licensing Exam

To get a real estate license, you generally complete required pre-license education, pass a state-approved exam and then work under a sponsoring broker. The exam is usually computer-based and multiple choice. Many states test both national real estate principles and state-specific law, but the number of questions, time limit and passing score differ by state and by exam provider. Your state real estate commission or its testing vendor publishes the current details, so confirm them before you register.

How to Use This Practice Test

  1. Pick an answer for each question. You get instant feedback and an explanation, and the scoreboard keeps count.
  2. Read every explanation, including for questions you got right.
  3. Check your section scores. A low score in one area tells you what to review first.
  4. Redo missed questions after a day or two.
  5. Practice the math by hand. Commission, proration, loan-to-value and cap rate problems appear on most exams.
  6. Aim for 80 percent or more in every section before test day. This is a study benchmark, not an official passing score.
  7. Study your state's laws separately. This test covers general principles.

Score Yourself

  • 90 to 100: excellent. Review any missed topics and take a state-specific practice exam.
  • 80 to 89: good. Focus on your weakest sections.
  • 70 to 79: keep studying, especially math, contracts and fair housing.
  • Below 70: review each explanation, then retake the test in a few days.

Answer Key

Use this key to score yourself quickly. The explanations above tell you why.

Q A Q A Q A Q A Q A
1 D 21 A 41 B 61 C 81 D
2 C 22 D 42 A 62 B 82 C
3 B 23 C 43 D 63 A 83 B
4 B 24 C 44 D 64 A 84 B
5 A 25 B 45 C 65 D 85 A
6 D 26 A 46 B 66 C 86 D
7 C 27 D 47 A 67 B 87 C
8 C 28 D 48 A 68 B 88 C
9 B 29 C 49 D 69 A 89 B
10 A 30 B 50 C 70 D 90 A
11 D 31 A 51 B 71 C 91 D
12 D 32 A 52 B 72 C 92 D
13 C 33 D 53 A 73 B 93 C
14 B 34 C 54 D 74 A 94 B
15 A 35 B 55 C 75 D 95 A
16 A 36 B 56 C 76 D 96 A
17 D 37 A 57 B 77 C 97 D
18 C 38 D 58 A 78 B 98 C
19 B 39 C 59 D 79 A 99 B
20 B 40 C 60 D 80 A 100 B

Frequently Asked Questions

How many questions are on the real estate exam?

It depends on your state and exam provider. Many states have a national portion and a state portion. Check your state real estate commission or its testing vendor for the current number of questions and time limit.

What is the passing score for the real estate exam?

Passing scores are set by each state or testing vendor, so check your candidate handbook rather than relying on a general number.

Are these the real real estate exam questions?

No. They are original practice questions that cover the same kinds of topics. They are for study only.

What are the hardest topics on the real estate exam?

Many candidates find math, contracts, finance and state-specific law the hardest. Fair housing and agency questions also use careful wording, so read each answer fully.

Do I need to study state law separately?

Yes. License law, disclosure rules, agency options and trust account requirements vary by state. Use your state commission handbook and course materials alongside this test.

Which fair housing classes are protected under federal law?

Race, color, national origin, religion, sex, familial status and disability are protected under the federal Fair Housing Act. States and cities may protect additional groups.

What should I do after I pass the exam?

Follow your state's steps to apply for the license and find a sponsoring broker. Then prepare your resume and cover letter, starting with our new real estate agent resume sample and cover letter sample. Our free proofreading service can check them before you apply.

Conclusion

Practice questions work best when you review the reasons behind each answer, practice the math by hand and learn your state's laws. Work through all 100 questions, repeat the ones you missed and use your state's candidate handbook as your final guide.

Related Reading

Sources: Know Before You Owe: Closing Disclosure, Consumer Financial Protection Bureau (Closing Disclosure timing); Fair Housing presentation, High Plains Fair Housing Center (federal protected classes). Checked in October 2026.

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